The second session of the Preparatory Committee (PrepCom) for the Fourth International Conference on Financing for Development (FfD4) provided a platform for Member States and stakeholders to reflect on the elements paper for, and share priorities and expectations that will feed into the zero draft of, the FfD4 outcome document.

The PrepCom’s second session was held in New York, US, from 3-6 December.

A concept note setting the scene for the meeting notes that the FfD4 preparatory process is taking place as the SDG financing gap for developing countries is estimated to have reached USD 4 trillion annually. “Multiple global crises, escalating debt burdens, and limited fiscal space have hindered investments in sustainable development,” it underscores, pointing to the need for a “revitalized global financing framework” to address existing and new challenges and “turbocharge efforts to achieve the SDGs.”

The elements paper, published ahead of the PrepComm’s second session on 22 November 2024, is based on almost 300 inputs from Member States, UN entities, international financial institutions (IFIs), and stakeholders. It includes a broad set of proposals that reflect priorities articulated in many submissions – as well as divergent views.

The 21-page document addresses a broad range of themes, including issues related to a global financing framework, domestic public resources, domestic and international private business and finance, international development cooperation, international trade as an engine for development, and debt and debt sustainability. It also contains elements on: systemic issues; science, technology, innovation, and capacity building; and data, monitoring, and follow-up.

In her opening statement, UN Deputy Secretary-General Amina Mohammed welcomed the “truly inclusive stakeholder gathering.” Noting that the SDGs “have stalled,” she stressed the need to: unlock the scale and quality of finance required to power investments; address debt service “that is crippling dozens of countries”; and protect economies from external shocks.

Mohammed said FfD4 represents an opportunity to fulfil the vision of the Pact for the Future on financial architecture reform to empower sustainable development. She called for concrete actions at FfD4 “to strengthen the voice and representation of developing countries in international financial institutions, ensuring that they become genuinely inclusive and more effective.”

On the concluding day of the meeting, UN Secretary-General António Guterres appointed “a group of prominent experts to promote actionable policy solutions and galvanize political and public support required to resolve the debt crisis.” Led by UN Special Envoy on Financing the 2030 Sustainable Development Agenda Mahmoud Mohieldin, the group will be co-chaired by former European Commissioner for Economy Paolo Gentiloni, former South Africa’s Minister for Finance Trevor Manuel, and Senior Academic Researcher at the Boston University Global Development Policy Center Yan Wang. The group’s deliberations will inform FfD4.

The PrepCom’s second session included a ministerial “scene-setter” that focused on the key financing policy reforms and solutions FfD4 should deliver. Eight plenary sessions discussed the various FfD aspects reflected in the elements paper.

FfD4 is scheduled to convene in Seville, Spain, from 30 June to 3 July 2025. [Second Preparatory Committee Session for FfD4] [Programme] [UN News Story] [SDG Knowledge Hub Sory on PrepComm’s First Session]